01-08-2025 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: EDA President Fischer and Officers of the Economic Development Authority FROM: Chris Heineman, City Administrator DATE: January 8, 2025 RE: Adoption of 2025 Economic Development Authority Budget ACTION TO BE CONSIDERED Adopt the Economic Development Authority budget for 2025. BACKGROUND An Economic Development Authority (EDA) can acquire property and facilities, but in most circumstances cannot issue authorize the issuance of debt without the approval of the electors. Some obligations are exempt from this requirement, including payment of any unpaid judgment against the municipality and certain pension or retirement fund liabilities. Otherwise, the city must authorize the issuance of debt in the resolution creating the EDA. A city may also levy a tax for the benefit of the EDA in an amount not more than 0.01813% of the taxable market value. Because the EDA levy is part of the city levy, it is not a “special levy” under state law and is therefore part of the city’s overall levy limit. The Little Canada EDA has elected not to levy a tax since it was established. The EDA Fund is primarily made of revenue from the purchase and sale of property and interest from investments. To account for increased economic development efforts, the EDA included a budget of $30,000 beginning in 2022 to be used for specific projects, such as the ULI Technical Advisory Panel in 2024. These funds are not always utilized, but staff recommends continuing to budget a modest amount each year to eliminate the need to approve a budget amendment for each expense. The EDA operating budget for 2025 was adopted at the December 4, 2024, Council meeting as part of the adoption of the City’s annual budget. The EDA is asked to take formal action to approve the EDA budget for 2025. RECOMMENDATION City staff recommends approval of the EDA budget in the amount of $30,000 for 2025.